TransCanada Corp.'s (NYSE: TRP) Columbia Gas Transmission unit has estimated that the section of the Leach Xpress natural gas pipeline, damaged in a blast on June 7 in Marshall County, W.Va., will resume operations early in July.
The company continues to work with federal pipeline safety regulators on a repair plan, it said late June 18 in a notice to customers who use the line.
TransCanada also said it will reduce capacity to zero on parts of the Leach line in Pennsylvania, West Virginia and Ohio on June 20. This will impact scheduled volumes at the Stagecoach-Leach Xpress meter in Monroe County near the Ohio-West Virginia border.
RELATED: TransCanada Working On Leach Xpress Pipe After W.Va. Blast
That meter, which connects Leach to EQT Midstream Partners LP's (NYSE: EQM) Strike Force South gathering fields in Monroe and Belmont counties in Ohio, returned to service late last week.
Strike Force can also deliver gas to Energy Transfer Partners LP's (NYSE: ETP) Rover and Enbridge Inc.'s (NYSE: ENB) Texas Eastern Transmission (Tetco) pipelines.
The shutdown of Leach Xpress had forced producers using the line to find other pipes to ship gas out of the Marcellus and Utica shale regions of Pennsylvania, West Virginia and Ohio.
The company has not yet provided details on what caused the blast.
Alternative pipelines include Energy Transfer's Rover, Tallgrass Energy Partners LP's (NYSE: TEP) Rockies Express, EQT Midstream's Equitrans and Enbridge's Tetco, according to analysts at S&P Global Platts.
Columbia Gas, which declared a force majeure after the blast, said the damaged section of pipe could affect movement of about 1.3 billion cubic feet per day (Bcf/d). One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.
Energy analysts, however, said overall output in the Appalachian region was little changed by the blast as producers, like Range Resources Corp. (NYSE: RRC) and Southwestern Energy Co. (NYSE: SWN), found other pipes to move their gas.
In fact, Appalachian output has increased to around 27.9 Bcf/d over the past three days from around 27.5 Bcf/d before the pipe blast, according to Thomson Reuters data.
The 1.5-Bcf/d Leach Xpress in West Virginia and Ohio, which entered full service at the start of this year, transports Marcellus and Utica shale gas to consumers in the U.S. Midwest and Gulf Coast.
The 12,000-mile (19,312-km) Columbia pipeline system, which TransCanada acquired in 2016, serves millions of customers from New York to the Gulf of Mexico.
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.